Aarti Drugs Limited — Q4 FY26
Aarti Drugs reported Q4 FY26 consolidated revenue of ₹721.1 crore (+6% YoY) and EBITDA of ₹96.6 crore (13.4% margin).
neutral
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
75%Questions answered1Evaded / deflected12Questions auditedMixedNumbers vs filing
Answered
High priority
How is the methylamine plant ramping up and utilization levels?
Asked by Shashank Coyle, Yumara Capital
Management provided specific utilization percentages and timeline.
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Question
How is the plan ramping up? What sort of utilization has it reached and what do you expect over the next two years?
Harish (Management)
December quarter utilization around 29%, March quarter upwards of 40%. Expect June quarter 55-60% and within a year upwards of 70%.
Partial answer
High priority
What was salicylic acid profitability and margin outlook?
Asked by Shashank Coyle, Yumara Capital
Management explained the shutdown but did not quantify past or expected margins.
no specific margin numbers givendeferred to future
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Question
What was your profitability at a level last quarter and what sort of margin and revenue profile can it reach over the next few quarters?
Harish (Management)
Salicylic acid still a laggard; we shut production due to variable losses. Will restart once equipment is operational and variable costs are in check.
Partial answer
High priority
Expect 10-12% volume growth and 4-5% positive rate variance?
Asked by Duanil Desai, Turtle Capital
Management gave a lower volume growth range and did not quantify rate variance.
did not confirm analyst's specific numbersgave lower range
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Question
Should we expect 10-12% volume growth and maybe some 4-5% positive rate variance because of regulated market contribution?
Harish (Management)
We will strive for volume growth of 8-10%. Realizations will be positive; longer the war, more positive variance.
Answered
High priority
Why only 8-10% volume growth despite new capacities?
Asked by Duanil Desai, Turtle Capital
Management explained the internal target and the demand risk.
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Question
With new capacity, why at company level we will only grow at 8-10% volume growth?
Harish (Management)
Internal target is 10-15% growth. Challenge is high antibiotic prices may reduce domestic demand, similar to Russia-Ukraine war period.
Partial answer
Medium priority
Gross margin outlook for coming year?
Asked by Duanil Desai, Turtle Capital
Management gave qualitative direction but no specific margin percentage.
no specific margin targetqualitative only
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Question
Are we expecting any delta in gross margin for the coming year given all these factors?
Harish (Management)
We don't expect much movement in gross margins. Q4 was fairly good; we would like to maintain that. Manufacturing costs can be reduced by a percent or so.
Answered
High priority
What is driving formulation growth and is run rate sustainable?
Asked by Duanil Desai, Turtle Capital
Management explained drivers and confirmed sustainability.
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Question
What is driving this growth and going forward, is this kind of run rate possible to maintain?
Visha (Management)
Growth from direct exports in non-oncology portfolio due to approvals in regulated markets. Expecting good number of approvals and market extensions to keep increasing export business.
Answered
Medium priority
Key geographies for regulated market improvement and niche products?
Asked by JJ, JJ Capital
Management specified geographies and timeline.
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Question
What are the key geographies leading to these improvements and niche products?
Harish (Management)
Mainly Latin American markets. European and US markets are target but haven't seen uptick yet. Expect flow from USFDA plant within a year.
Answered
High priority
Status and timeline for key USFDA approvals for APIs?
Asked by JJ, JJ Capital
Management provided specific timeline.
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Question
What is the status update on timeline for key USFDA approvals for APIs?
Harish (Management)
Got USFDA plant approval last year. Actively marketing antibiotic, anti-inflammatory products; flows will start within 12-18 months.
Partial answer
Medium priority
Challenges in methylamine ramp-up: external vs internal?
Asked by Sajal Kapoor, Antifality
Management did not explicitly categorize challenges as requested.
did not clearly separate external vs internaldownplayed issues
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Question
What challenges in the methylamine ramp-up were external vs internal execution issues?
Harish (Management)
Methylamine scale-up going well. Minor internal issues at drying of one derivative but not worried. Utilization already around 60% in first half of Q1.
Answered
High priority
How much of metformin value chain does Aarti control?
Asked by Sajal Kapoor, Antifality
Management explained backward integration status and regulatory plans.
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Question
How much of the value chain do we now control for metformin?
Harish (Management)
For indigenous intermediate, we are the only ones with backward integration facility. Filed DMF with US for metformin; next stage is FDA inspection.
Answered
High priority
Can we expect 100-200 bps EBITDA margin improvement in FY27?
Asked by Sajal Kapoor, Antifality
Management confirmed the target.
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Question
Is it fair to expect at least 100 to 200 basis points margin improvement in FY27?
Harish (Management)
Yes, we can expect that in terms of gross contribution, at least 100 basis point we can definitely target.
Evasive
Medium priority
Which API products saw price hikes and sustainability?
Asked by Rishab Jen, Modi Capital
Management did not list which products saw price hikes.
did not name specific productsvague on sustainability
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Question
Which products have witnessed price hikes and how sustainable are these increases?
Harish (Management)
Prices are not stable. We don't expect further increase unless crude goes beyond $130-140 per barrel.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| EBITDA margin 13% in Q4 FY26 | 13% | 13.4% | Matches filing |
| Target EBITDA margin 13.5-14% for FY27 | 13.5% | 13.4% | Matches filing |
| Earlier target EBITDA margin 14-14.5% for FY27 without war | 14% | 13.4% | Matches filing |
| Formulation business target to grow to 1000 crores in 3-5 years | ₹1,000 cr | ₹721.1 cr | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.